Kavazovic will replace former coach Luc Eymael, who resigned from Ea Lla Koto in November.
The 43-year-old Serb has signed a two and a half-year contract with Stars.
"We really took our time in searching for the new coach, we made sure we choose the right man for the job," Free State Stars general manager, Rantsi Mokoena said on their official website.
"The coach brings vast experience to our league, having coached Botswana's Township Rollers and recently for the very first time in their history, Rollers qualified for the Champions League.
"He is a strong believer of youth players and what I also liked about the coach is that when he was introduced to the players he knew their names."
Kavazovic will be assisted by David Vilakazi and Selaotse Mosala.
Stars have won just three of their 15 matches in Absa Premiership and are currently 13th on the log.